Requirements to Open a Pawn Shop in Florida
- Apply to the Florida Division of Consumer Services.
- Use Application Form DACS-10-111.
- Include $300 fee.
- Maintain $50,000 net worth or file $10,000 security.
- Apply to the Florida Department of Revenue.
- Register to pay sales taxes.
- Acquire Certificate of Registration and Annual Resale Certificate.
How Pawn Shops Work in Florida
A pawnshop transaction works by offering collateral-based loans. You take in an item you own. The pawnbroker offers you a loan. The pawnbroker keeps your item until you repay the loan.
Getting a Pawn Shop License in Florida
The Florida Pawnbroking Act requires pawnshops to obtain an annual license with the Florida Department of Agriculture and Consumer Services (FDACS). Each pawn shop must maintain a net worth of at least $50,000 or file $10,000 security with FDACS.
Earning interest and profits on retail sales are the income sources for a pawnshop. Pawnshops typically aim for 15-25% net profit margins.
Records that Florida pawn shops must keep for 1 year include a “secondhand dealer transaction form” containing specific information for each transaction.
Regulatory Information
To open a pawn shop in Florida, apply to the Florida Division of Consumer Services. Use Application Form DACS-10-111. Include a $300 licensing fee. Pawn shops must maintain $50,000 net worth or file $10,000 security. Register with the Florida Department of Revenue for sales tax registration. Acquire a Certificate of Registration and Annual Resale Certificate. Keep transaction records for one year.
Research the value of vinyl records before pawning. Consider if you can repay the loan before pawning sentimental jewelry.
Pawn shops typically aim for 15-25% profit margins. To be licensed in Florida, pawnbrokers must have $50,000 net worth or file $10,000 security. Each shop must keep this financial security.
Most Florida pawn shops have similar lending practices and regulations as shops in other states. High interest rates on loans make them quite profitable. However, Florida has tighter restrictions on new locations with licensing and zoning limits.
The licensing process involves initial research on profitability, forming a legal business entity for your shop, then applying to Florida agencies. Renew licenses annually. Some aspects, like extra licensing, vary case-by-case. But core regulations on net worth and security apply to all.